ifez journal_eng(201609)

FIRST MOVER, INCHEONIFEZ, GlObal buSINESS FRONTIER

Incheon

home of Korea’s first port

has served

as the nation’s First Mover

throughout history.

IFeZ, the embodiment of

Incheon’s challenging spirit

will develop into

a Global Business Frontier

by 2030.

09·10

ww

w.if

ez.g

o.kr

2016

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IFEZ U-City Is Emerging as the Forerunner of Global Smart Cities

GlObal buS INESS FRONT I ER - I F EZ 13YEARS ANNIVERSARY -

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ifez Journal 09·10 2016

08 hot Spot

영종도~청라 제3연륙교

2019 착공 파란불

18 hot Spot

Young-jong Soaring up as an Aviation Industry Cluster

20 Better Life

Beautiful Design City

22 Cover Story

IFEZ U-City Is Emerging as the Forerunner of Global Smart Cities

24

The Whole World is Busy Building Smart City

28

IFEZ, a Cutting Edge Future City

32 Biz taLk

Ben JEONG, Head of GCoE

34 foCuS

Incheon Is Rising as the Center of Polar Research

35 NewS+

Visitors include President of Myanmar, the First Vice Minister of Ministry of Land

06 NewS Brief

16 viSioN

IFEZ Vision 2030

13 SpeCiaL iNterview

IFEZ Commissioner Lee Young-geun

14 SpeCiaL MeSSage

세계적인

스타트업 도시

샌프란시스코

14 highLightS

Its Dazzling Strides of the Past 13 Years and Greater Leaps by 2030

Vol. 71IFEZ U-City Is Emerging as the Forerunner of Global Smart Cities

The entire world is enthusiastic

about the development of intelligent cities.

The IFEZ U-City model is

garnering much acclaim in Korea and beyond.

At the Cisco Live 2016,

a Cisco manager suggested that

you visit IFEZ to find out

about the state-of-the-art of smart city.

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Contents

ANNIVERSARYSPECIAL

04 hot iSSue

IFEZ 2030 Vision and Strategy Proclamation Ceremony

08 iNtro

The daunting present built over the sea, Relentless drive towards the future

10 SpeCiaL MeSSage

Mayor Yoo Jeong-bok, Chairperson Jegar Won-yeong of the Incheon Metropolitan Council

Publisher Lee Young-geun | Published by Incheon Free Economic Zone Authority PR Center 175,Art center-daero(Songdo-dong), Yeonsu-gu, Incheon, Korea | Date of Issue July 1st, 2016 (Vol.70)Planning &Design& Printing CEDITOR ·Tara T.P.S (82-70-4488-7870)Government publications No. 54-6280548-000013-07IFEZ Journal is a bimonthly public relations magazine of Incheon Free Economic Zone.To subscribe (free of charge), please contact +82-32-453-7074


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Hot Issue

바다 위에 세운 눈부신 현재,

미래를 향한 끊임없는 도전

IFEZ is expected to advance the era of Incheon’s economic independence

The proclamation ceremony was attended by Incheon Mayor Yoo Jeong-bok, Chairperson

Jegar Won-yeong of the Incheon Metropolitan Council, Commissioner Lee Young-geun of IFEZ,

and 250 guests from pertinent government agencies and corporations. Mayor Yoo stressed

that advanced countries are reinforcing the competitiveness of their cities by creating economic

blocs centered on metropolitan cities, adding, “It is high time that the Pan-Yellow-Sea economic

bloc was created around Incheon, and IFEZ is expected to serve as the prime mover to make

this a reality.” Mayor Yoo also said that the new vision of “Global Business Frontier” and its

detailed implementation strategies represent the ongoing process of building a framework

for sound growth of both the city and the nation. He said, “I believe IFEZ will be the vanguard in

advancing the era of Incheon’s economic independence needed to ensure citizens’ happiness.”

The first important step to foster IFEZ into a global business frontier has been taken. The IFEZ 2030 vision and strategy proclamation ceremony was held on July 19, through which the new vision of “Global Business Frontier” and the four key strategies to bring the vision to life were announced.

The four key implementation strategies are announced and expected to drive the economic

growth of Incheon and South Korea

The newly proclaimed vision denotes Incheon’s will to throw new light on its longstanding value

as the nation’s historical and geographical frontier and first mover with Incheon Port opened in

1883, bring that value to life once again through IFEZ, and grow into a “global business frontier”.

Based on this vision, the four key implementation strategies of becoming “a global economic

platform”, “the hub of service industries”, “the hub of convergence industries”, and “a smart

city” were proposed.

IFEZ Commissioner Lee Young-geun stated, “IFEZ 2030 holds great significance. It is a clear

expression of Incheon’s determination to open up the era of its economic independence, in

which IFEZ drives Incheon’s economic growth and the city leads the Pan-Yellow-Sea economic

bloc, to promote foreign investments and contribute to the nation’s competitiveness.”

IFEZ Develops into a Global Business FrontierIFEZ 2030 Vision and Strategy Proclamation Ceremony

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Jack Nicklaus Golf Club, which formerly hosted the Presidents Cup, is now hosting 2018 UL International Crown.

Incheon Metropolitan City to fully support Youngjong Resort Complex

Incheon Metropolitan City is fully ready to support the Resort Complex project in

IFEZ Youngjong District. According to the city, Kevin Brown, CEO of Mohegan Sun,

and Inspire Resort Complex representatives of Inspire Integrated Resort (Inpire IR,

hereafter), visited Incheon Metropolitan City on August 3.

Inspire IR is a joint investment corporation of US Mohegun Sun and Korean KCC,

and has been appointed as the final licensee at the Request for Proposals on

Complex Resort Development Project held by Ministry of Culture, Sports and

Tourism in last February. YOO Jeong-bok, Mayor of Incheon Metropolitan City, has

confirmed full support of the city government on the Inspire IR project. Inpire IR

is to build a theme park themed resort complex, by phased investment of 5 billion

USD (approx. 6 trillion KRW) in the 2,640,000㎡ land. Mayor of Incheon Metropolital City meets with Mohegan Sun CEOs to discuss Youngjong Resort Complex investment

Jack Nicklaus Golf Club in Songdo Business District has been appointed

to host 2018 UL International Crown, announced LPGA on July 21 (Korean

time) at the press conference, which took place at the UL International Crown

convention.

UL International Crown is a bi-annual competition between countries, held

by LPGA. The race is to be run by 32 players, with 4 players from each of

the 8 internationally ranked countries, namely, Korea, Australia, Taiwan,

Japan, Spain, Sweden, USA and Thailand. The first competition was held in

2014 at the Caves Valley golf club, Owings Mills, Maryland, USA. The second

competition was hosted at Merit Club in Chicago. Jack Nicklaus Golf Club

opened in 2010, and held the first Presidents Cup ever in Asia. Its size is

7,413 yards with par 72, and it is equipped with a world class club house and

facilities.

“We expect to vitalize local economy directly and indirectly, and promote

the city brand of Incheon Metropolitan City and national brand of Korea, and

increase tourists, through hosting the 2018 UL International Crown," asserted

an IFEZ officer.

2018 UL International Crown to be hosted in Songdo Business District

Central Park reopens as a 4-season park

Central Park is to renovate as a venue to

experience all the four seasons, by planting various

trees. IFEZ has planted 5000 shrubs including 1800

forsythias, 183 deciduous tall trees, 36 evergreen

trees in the Central Park, with a 500 million KRW

budget.

Naming of 5 Songdo entry bridges to be complete by October

The names of five entry bridges to Songdo

Business District will be finalized and notified by

October, by National Naming Committee, through

its third quarter review. Currently, the first Songdo

Bridge is to be called Songdo International Bridge,

the second Songdo bridge is to be called Convensia

Bridge, the third bridge Art Center Bridge, the

fourth brdge Songdo Bio Bridge, and the fifth

Bridge New Port Bridge.

IFEZ to complete reclamation of zone 11-1, to boost development

IFEZ has announced creation of 4.32 ㎢ land, with

completion of reclaiming public waters at Songdo

11-1 zone. It has taken 4 years and 9 months,

since beginning of construction in August 2011.

Accordingly, Songdo Business District now has

a new piece of land that is 1.6 times bigger than

Yeo-ui-do. IFEZ is also planning on completing the

reclamation of Songdo 11-2 zone by November,

and 11-3 zone (1.05㎢) by 2018.

Director LEE Young-geun in the 2016 Montreal New City Summit to introduce IFEZ and discuss Incheon-Montreal collaboration.

IFEZ visited Montreal, Canada, to attend 2016 Montreal New City Summit, where it operated a

promotional booth for Incheon Metropolital City, and gave a presentation to global enterprises

on investment in IFEZ. More than a hundred companies participated in this event, including

Ericcson, the first player to introduce communication equipment and phones to Korea; Cisco, a

U-Life solution investor in IFEZ; and Emaar, which is participating in the Saudi Arabian national

project called King Abdullah economy city development.

Ericsson gave a investment relations presentation to global companies including Emaar

Incheon to extend 5 years for UNISDR residency

Incheon Metropolitan City signed on the administrative and finance support agreement with

UNISDR on July 21, and accordingly, the residency of its East North Asia office in G-Tower

in Songdo Business District is to be extended for another 5 years until 2020. United Nations

International Strategy for Disaster Reduction (UNISDR) is an international organization to support

building an international effective disaster management system, and its East North Asia office

opened in 2009 in Songdo Busisness District.

Incheon Metropolitan City signed 5 years extension of UNISDR residency in Incheon

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Overview of Songdo International City, the driving force of 2016 Korea's growthThe Daunting Present Built over the Sea Relentless Drive towards the Future

ANNIVERSARYSPECIAL

+Intro

2015

2014

2016

2013

2012

2011

2010

2009

2007

2008

Overview of 2007 Songdo International City during construction of infrastructure

A grand dream that started on the shore has continued to grow and take shape over a journey of the

past 13 years and finally bloomed into a world-class cosmopolitan city.

IFEZ is celebrating the 13thanniversaryofitsestablishment. IFEZ is working hard to preserve Incheon’s

longstanding frontier spirit and to bring greater miracles and positive change to the city.

IFEZ always goes off the beaten path, believing that every one of its footprints shapes the past, present,

and future of the nation’s economy.

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Congratulatory Speech for the 13th Anniversary of IFEZ

The creation of new value for Incheon has been the project of focus since my inauguration. They have all been made possible thanks to the collective efforts of Incheon citizens and government officials, who have all remained dedicated to the development of Incheon. They are the true heroes of Incheon Upgrading Operation.

ANNIVERSARYSPECIAL

+Message

Code Name IFEZ for Incheon Upgrading OperationBy Mayor Yoo Jeong-bok

Dear readers of IFEZ Journal,

The sweltering heat of the summer months has finally subsided to

make way for the chilly winds of fall. As always, the world is coming

to another full circle yet making progress little by little. I hope you

will all find yourselves elevated to new heights with each season.

One of this summer’s box office hits has been Incheon Landing

Operation (Operation Chromite). In 1950, the entire Korean

Peninsula, excluding the Nakdonggang River region, fell under

North Korea’s control in just one month after its invasion into the

South. On the brink of the precipice, General Douglas MacArthur

(played by Liam Neeson), Commander-in-Chief of the United

Nations Forces in the Korean War, planned and launched the

operation. The probability of its success was 5,000:1. Everyone

projected that it would end in failure, but General MacArthur

turned the operation into a resounding success. This film also

threw new light on the forgotten Operation X-Ray and KLO unit.

Incheon is still the site of many historic developments and continued

evolution made possible by many heroes. I believe the current situation may

be described through the title “Incheon Upgrading Operation” in homage to

Incheon Landing Operation.

The halfway point of my term has just passed, and the past two years could

be described as full of moments of both concern and hope. Liabilities of KRW

13 trillion were reduced to KRW 11 trillion in just two years as a result of

painstaking efforts. It was daunting but equally rewarding.

The creation of new value for Incheon has been the project of focus since my

inauguration. Although Incheon was often dubbed one of the nation’s top three

cities in terms of its size, it has typically been recognized as a mere gateway to

Seoul. To highlight the city in itself, we opened to the public the path towards

the top of Mount Munaksan, which had been closed for five decades. We are

also working to change the bland, personality-less gu (district) names given

after their cardinal points into ones that can truly reflect each gu’s history and

identity.

The linking of the Suwon-Incheon Railroad with the Seoul-Busan Line for KTX,

the transformation of the Seoul-Incheon Expressway into a non-

toll road, and the construction of GTX are also directly correlated

with the creation of new value for Incheon. In particular, the linking

of the Suwon-Incheon Railroad with the Seoul-Busan Line for

KTX holds great significance in that it is a testament to the city’s

reinforced status to manage its own public transportation.

The urban regeneration project, which has been pushed ahead

with since the early days of my term, is starting to show notable

results. The Geomdan New Town development project is moving

forward under the new name Saebit Town, while the New Stay

project is also progressing favorably.

None of the abovementioned projects, from the realization of

financial soundness to the creation of new value for the city, the

linking of KTX with the Suwon-Incheon Railroad, and urban

regeneration, could be achieved by one single individual alone.

They have all been made possible thanks to the collective efforts of

Incheon citizens and government officials, who have all remained

dedicated to the development of Incheon. They are the true heroes of Incheon

Upgrading Operation.

I would like to shed light on one more hero, and that is IFEZ, celebrating its

13th anniversary. I extend my deepest gratitude for and applaud the hard work

of Commissioner Lee Young-geun and all IFEZ staff members to bring about

the innovation and evolution of Incheon.

IFEZ has achieved overwhelming results throughout its 13-year history. This

is evidenced by the fact that IFEZ ranked first in the national FEZ assessment

conducted by the Ministry of Trade, Industry and Energy in 2015.

I proposed the creation of the Pan-Yellow-Sea economic bloc centering on

Incheon in July in the IFEZ 2030 vision and strategy proclamation ceremony. In

this regard, IFEZ is expected to serve as the prime mover.

I share in our citizens’ joy for the 13th anniversary of IFEZ and designate IFEZ

as the code name for our Incheon Upgrading Operation.

Thank you.

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Dear readers of IFEZ Journal,

My name is Jegar Won-yeong, and I am the chairperson of the

Incheon Metropolitan Council.

The stifling summer heat has finally passed and September, the

month of fruition and Chuseok (Korean Thanksgiving), is here. I

sincerely hope that you will have an abundant harvest in everything

you have planned and your goals will be reached. I also wish all of

you and your families a happy, fulfilling Chuseok.

I would like to extend my warmest congratulations on the 13th

anniversary of IFEZ and my deepest gratitude for Commissioner

Lee Young-geun and all IFEZ staff members for their hard work

and dedication.

IFEZ, being developed on an expanse of reclaimed mudflats, is not

merely an organization designed to attract corporations; it is aimed

at serving as a link between South Korea and the international

community throughout the future. The growth of IFEZ is expected

to lead to the advancement of Incheon and drive the nation’s

continued economic progress.

The many indicators shown by IFEZ over the past 13 years since

its inception attest to its ability to meet our expectations and its

position as South Korea’s number one free economic zone. Thanks

to IFEZ, Incheon has risen as one of the most noted international

cities.

However, South Korea is faced with many unexpected crises,

from its birth rate that is lower than the OECD average to its aging

population, unanticipated global economic changes such as Brexit,

climate change, and energy problems.

It is said that stagnant water spoils. I welcome IFEZ’s effort to

remainfluid, which is reflected in its new vision (“Global Business

Frontier”) and implementation strategies announced through the IFEZ 2030 vision

and strategy proclamation ceremony. I also welcome its determination to promote

foreign investment and enhance the nation’s competitiveness by keeping abreast of

the times and making the most of its achievements and knowhow. Once the tasks

set are completed step-by-step, positive change beyond our imagination will be

brought to Incheon and South Korea.

I strongly believe that all IFEZ staff members will do their best to turn the new vision

into reality and thereby contribute to the advancement of the city and the nation.

The 7th Incheon Metropolitan Council in the second half will work hard to ensure

the implementation of the key strategies of IFEZ and help IFEZ readily respond to

the latest changes. We will also strive to make“ a fair and transparent Council”, “a

Council centered on the standing committee”, “a Council that stands by the three

million Incheon citizens”, and “a trustworthy Council” by focusing on the needs of

Incheon. Thank you.

IFEZ to Become the Driving Force of KoreaBy Chairperson Jegar Won-yeong of the Incheon Metropolitan Council

IFEZ Ready to Take the Lead in the Era of Incheon’s Economic IndependenceIFEZ Commissioner Lee Young-geun

This year marks the 13th anniversary of IFEZ’s establishment.

Commissioner Lee Young-geun of IFEZ has boldly proclaimed

IFEZ’s vision to grow into a global business frontier by 2030.

Please tell us about the background against which the new vision

was established.

IFEZ has overcome many difficulties and achieved notable feats

over the past 13 years, consistently guided by its objective of

building a business hub of Northeast Asia. Now, it has arrived at

a point where it must come up with a new blueprint for the future

based on its past footprints, while focusing its resources on

creating the Pan-Yellow-Sea economic bloc centered on Incheon.

IFEZ set its new vision as a “Global Business Frontier” to clarify and

fulfill its duties as a forward base and vanguard for advancing the

economic growth of Incheon and South Korea.

Tell us more about IFEZ’s new vision.

Incheon has remained the first mover of the Korean Peninsula

throughout its history. It is the site of the nation’s first port (Jemulpo

Port opened in 1883), and the nation’s first railroad (Seoul-Incheon

Line) began its service here. In short, Incheon has beenthe

frontier city that has pioneered many firsts amidst the waves of

modernization. IFEZ was designed to preserve this historical

value of Incheon and take the lead in opening up an era of the city’s

economic independence by helping to create the Pan-Yellow-Sea

economic bloc. Such aims and beliefs are compressed in the new

vision of “Global Business Frontier”.

What is the reason for setting the target year at 2030?

The land reclamation, creation of infrastructure, and investment promotion are

expected to be fully completed by 2030. As such, IFEZ will strive to achieve its new

vision of growing into a “Global Business Frontier” by that year. Four implementation

strategies have been established to bring this vision to life, and they are “a global

economic platform”, “the hub of service industries”, “the hub of convergence

industries”, and “a smart city”.

What are your expectations for the new vision and implementation strategies for

2030?

The new vision was established in a bottom-up manner, with all IFEZ staff members

voicing their needs and opinions. They put their heads together and established

this vision and its implementation strategies in an aim to build a brighter future for

Incheon and Korea. As such, I expect that they will serve as a powerful impetus

behind all projects we push ahead with. Thank you.

Congratulatory Speech for the 13th Anniversary of IFEZ Congratulatory Interview for the 13th Anniversary of IFEZ

ANNIVERSARYSPECIAL

+Message

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Enterprise

ANNIVERSARYSPECIAL

+Highlights

Local Population

Present &

FutureEducation

Investment

IFEZ is continually attracting investments from top-tier companies, research institutes, and educational organizations in Korea and beyond as a global business platform.

The number of foreign invested companies increased from 3 in 2003 to 80 as of late June 2016. It has risen 27 times over the past 13 years.

As of the end of June, 14 international organizations are in IFEZ, including the North East Asian office of UN ESCAP, and the GCF executive office. The 14th organization is UN Governance Center, which signed an MOU last June on the UN Governance center operation.

1,737 companies as of June 2016 (from zero in 2003 upon opening of IFEZ)

IFEZ, in its 13th year since its inception, has attracted a total of USD 8.3 billion in investment from across the globe as of late June 2016.

The number of local students at Incheon Global Campus (IGC) stood at 1,200 as of April 2016. Based on this figure, IFEZ projects that IGC will achieve reduced expenses of students studying abroad totaling at least KRW 50.1 billion (KRW 50 million per student).

The number of international residents with in IFEZ grew by ten times from 415 in 2003 to 4,281 at the end of June 2016.

IFEZ accounts for 82% of the total FDI recorded by all eight FEZs in South Korea (as of December 31, 2015).

Continued Influx of Investment

Foreign Invested Companies

Number of companies moved into IFEZ

International Organizations

The Present and Future of IFEZ

Education

Educational facilities aimed at fostering future global leaders are rapidly taking shape. At the center of such developments lies Incheon Global Campus (IGC).

As of late February, Songdo International City’s population exceeded the 100,000 mark.

As of June, there are 86 education facilities including 29 kindergartens, 22 elementary schools, 10 middle schools, 15 high schools, 8 colleges and 2 international schools.

The population in 2003 stood at a mere 25,778. However, as of late June, 2016, it totals 253,465, showing an increase of 9.8 times. 2030

Population

International residents

Foreign investment

Foreign invested companies

International organizations

International universities

Resort complexes

Hotels

FDI in 2016

(unit: USD million, as of June 30, 2016)

2016 Total Percentage(%)

Songdo 159.4 4,095.4 49.3

Yeongjong 170.0 3,487.0 42.0

Cheongna 0 720.9 8.7

Total 329.4 8,303.3

2016

IFEZIts Dazzling Strides of the Past 13 Years and Greater Leaps by 2030

USD 8.3 billion

KRW 50.1 billion

4,281

3 >80

86

253,465

0 >14

0 >1,737

82%

253,465

4,281

USD 8.3 billion

80

14

4

0

14

536,766

60,000

USD 15 billion

150

150

10

6

40

Population


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IFEZ reset its development target year from 2022 to 2030 based on its newly defined vision and implementation strategies in order to mirror its outcome of the past 12 years and pave a new path. The result is the establishment of the vision “Global Business Frontier”. The following are the four key implementation strategies designed to bring this new vision to life.

To play the role of a forward base of the Pan-Yellow-Sea economic bloc as a globally recognized economic platform To realize a robust and solid economic platform not swayed by global variables

Vision Strategies and Tasks

ANNIVERSARYSPECIAL

+Vision

IFEZ, Global Business Frontier

Blueprint for 2030

3.Global Economic Platform

➊ Forward Base of the Pan-Yellow-Sea Economic Bloc➋ Strategic Foothold for the China-South Korea Free Trade Agreement

➌ City of International Organizations

➍ Hub of Global Education and R&D➎ Hub of the MICE and Tourism Industries➏ Hub of the Maritime and Leisure Industries➐ Hub of Cultural and Arts Content➑ Hub of Financial and Knowledge Services➒ Hub of Cutting-Edge Distribution and Logistics

Hub of Service Industries

Hub of Convergence Industries

➓ Biomedical Hub State-of-the-Art Technological Convergence Hub Hub of the Advanced Automobile Industry

Smart City Eco-Friendly City Boasting Specially Designed Cityscapes Low-Carbon, Energy-Saving City Ubiquitous City

Strategic foothold for the China-South Korea Free Trade Agreement

The Way Forward for a Brighter FutureIFEZ Vision 2030

Platform of the Pan-Yellow-Sea economic bloc Seat of the regional

headquarters of various multinational corporations

Center of international organizations and green industries combating climate change

Seat of the regional headquarters of various multinational corporations

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Incheon and IFEZ have jointly taken bold steps to foster Asia’s top-tier cluster for the aviation industry in Yeongjong – the seat of Incheon International Airport, the gateway to South Korea. At the heart of this ambitious plan lie the Flight Training Center and Aeroengine Maintenance Service Center.

A special complex dedicated to MRO to be established in Yeongjong

The plan to connect Yeongjong, Songdo, and Incheon’s old downtown and

nurture the area into a forward-looking aviation city has been proposed. Incheon

Metropolitan City hosted the Forum for Strategies to Develop Incheon into an

Aviation City on July 20, which offered a blueprint for the development of the aviation

industry in Incheon. A special complex dedicated to MRO (maintenance, repair, and

overhaul) will be formed in Yeongjong with Incheon International Airport as its axis,

with an academic-industrial convergence district for aviation created in Songdo. The

industrial complex located in Incheon’s old downtown will be used to accommodate

aviation parts manufacturers. In addition, the project to lay a foundation for an ultra-

light flying device (drone) testing support center is being considered. This special

complex is likely to be created on the 1.14-million-square-meter plot of land near

the 4th Runway of Incheon International Airport.

Asia’s Largest Cradle of Pilots – Flight Training Center

The Flight Training Center, completed in the industrial and logistics land of

Yeongjong Sky City on April 26th, is a building with three stories above the ground

and one basement floor built on a 32,000-square-meter plot. The Center will go

into full operation by the end of September after all eight full-flight simulators at the

existing training center are reinstalled there. The Center can

accommodate up to 12 such simulators and can train up to

3,500 pilots a year.

• Location: 13 Yeongjongsunhwan-ro 900beon-gil, Jung-gu

• Area: 32,614.5 square meters in land area / 40,547.65

square meters in building area / 80,659.26 square meters

in total floor area (three stories above ground and one

basement floor) – training and research facilities

• Cost: KRW 150 billion (including expenses needed to install

advanced simulators)

• Objective: to foster world-class pilots

• Project led by: Boeing Korea LLC (land purchase) and

Korean Air (Center construction) / Flight Training Center

jointly operated by the two companies

World’s Largest Engine Test Cell Opened at the Aeroengine

Maintenance Service Center-ETC

The Engine Test Cell (ETC) of the Aeroengine Maintenance

Service Center, which is expected to significantly contribute

The Engine Test Cell (ETC) of the Aeroengine Maintenance Service Center, which is expected to significantly contribute to Incheon’s growth into an aviation cluster, began its operation on June 9th. •Flight Training Center can accommodate up to 12 such simulators and can train up to 3,500 pilots a year.

to Incheon’s growth into an aviation cluster, began its operation on June

9th. ETC was completed as the first stage of the Aeroengine Maintenance

Service Center construction project led by Incheon Aviation Tech Co., LTD

(IAT), South Korea’s first aircraft engine MRO specialist. This world’s-

largest ETC, with the cell size measuring 14 meters in width and 14 meters

in height, is capable of conducting tests for next-generation engines to

be developed in the future (up to 150,000-pound engines, including those

for B777X aircraft), as well as 115,000-pound engines (including GE90

mounted on B777 aircraft), which boast the highest thrust.

• Location: 15 Yeongjongsunhwan-ro 900beon-gil, Jung-gu

• Area: 69,208.5 square meters

• Cost: KRW 120 billion (including USD 10 million)

• Objective: to provide the site for overhaul, assembly, and repair of aircraft

engines, engine performance testing, etc.

• First stage – ETC / Second stage – engine maintenance, etc.

• Project led by: IAT – a joint venture of UTC of the US (10%) and Korean

Air (90%)

Hot Spot ifez Journal 09·10 2016

Young-jong Soaring up as an Aviation Industry ClusterFlight Training Center & ETC


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Better Life

Cheongna International CitySongdo International Business District Youngjong District

IFEZ, an Environment-Friendly and Landscape Specialized City

Beautiful Design City IFEZ has special city planning strategy that is three-fold. It is a global U-City; environment-friendly green city; and also a beautifully designed city. IFEZ manages the entire city as a work of design with an integral theme, aiming at landscape advancement.

Landmarks

IFEZ has been focusing on urban design for the last 13 years, and the Central Park area in Songdo International Business District has become a globally popular attraction.

Songdo ConvensiaIt is a complex convention center with interesting appearance, reflecting the Korean Taebaek Mountains. It has recently become a central base for MICE industry, and very popular as a shooting location for CF, film and TV shows.

Based on an advanced integral guideline that is distinctively different from that of

any other city, IFEZ is building a beautifully designed city. In a big picture, IFEZ aims

to establish a waterside city, linked to its marine landscape. The landscape building

strategy consists of 7 plans, including international city, design specialized city, and

city with beautiful night, to integrally manage the city design.

Songdo International Business District, Cheongna International City and Youngjong

District each have their own design theme, based on their regional characteristics.

Songdo is specialized in night landscape, high end architecture landscape,

mountainous skyline and waterside network, as the global base for cutting edge

information service industry.

Cheongna is a new concept business town, and by means of combined development,

it is building a tourism hub landscape, an extremely symbolic landscape with the city

tower, and a waterside specialized landscape centered with

canal way.

Youngjong District with Incheon International Airport is the

very gate of a global city. The basic design theme is to produce

a tourism and leisure image, commercial district image and

harmonious image with natural green fields.

To this end, IFEZ has established a detailed guideline for

each district on development and design plan, to facilitate

observing the licensing procedure. It conducts an in-depth

review on individual building and infrastructure, by operating

a landscape committee.

NEATT and G-Tower Songdo International Business District shows a tent-like skyline, inspired by the Korean mountains. Songdo Central Park and the architecture around it have been designed in collaboration with renowned American design companies (KPF, HOK).

Tri-bowlIt is a work by YOO Kerl, a renowned Korean architect, reflecting the image of Korean mountain ridges upside down, representing 3 bowls embracing Songdo, Youngjong and Cheongna. In a salient contrast with the neighboring modern architecture with straight lines, it composes a harmonious line with the circular waterway in Songdo Central Park.

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The entire world is enthusiastic about the development of intelligent cities – often called ubiquitous cities or smart cities. The IFEZ U-City model, being applied to South Korea’s first special economic zone IFEZ, is garnering much acclaim in Korea and beyond. Incheon U-City, currently pushing ahead with the IFEZ U-City project in collaboration with IFEZ, has set up a plan to develop the IFEZ U-City model into the K-Smart City model and spur its advance into the global market.

IFEZ U-City Is Emerging as the Forerunner of Global Smart CitiesCurrent Status of the Global Smart City Development and Smart City Model Unique to South Korea

C o v e r S t o r y ifez Journal 09·10 2016

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State-of-the-art information cities are expected to not only enhance the quality of life of citizens but also serve as a new growth engine as an added-value industry.

C o v e r S t o r y

cities, and pertinent industries are making notable progress led by

private corporations. The smart city policy of the US and Europe is

focused on transforming existing cities into smart cities, while South

Korea’s U-City policy mainly targets newly created cities.

New York City of the US and Dubai of the United Arab Emirates

are working on recreating themselves into smart cities

In accordance with Market and Market, a market analysis

specialist, the market dealing with state-of-the-art information

cities such as smart cities is expected to achieve drastic growth

and increase from USD 400 billion (approximately KRW 467

trillion) in 2014 to USD 1.1 trillion in 2019.

The 5th Smart City Expo World Congress held last year was

attended by 440 cities of 92 countries, testifying to the world’s

rising interest in smart cities. At last year’s Smart City Expo World

Congress, New York City and Microsoft jointly proposed a business

platform that illustrated a plan to turn the city into a smart city

and pertinent technological solutions.

Barcelona is currently pushing ahead with over 200 smart city-

related projects. Some of the projects include the installation of

smart streetlamps that can automatically adjust illumination

based on human traffic identified by measuring noise and air

pollution near main roads and smart parking lots that provide

vacancy information in real time. As a result, over 47,000 jobs

were created and the city’s revenue increased by USD 108 million

last year.

The creation of state-of-the-art information cities is a major focus.

State-of-the-art information cities are expected to not only enhance the quality

of life of citizens but also serve as a new growth engine as an added-value

industry. For this reason, countries across the world are engaging in fierce

competition to develop new technologies and pre-empt the new market.

The countries and companies equipped with the technology needed for the

creation of such information cities are striving to advance into the markets of

less developed countries that are undergoing rapid urbanization.

In the midst of such developments, many policy terms such as U-City and

smart city were introduced to refer to state-of-the-art information cities and

began to be used as brand names. As for South Korea, the term ubiquitous,

meaning “accessible to computer networks at any time and any place”, was

employed and transformed into the brand name U-City. With the Act on the

Construction, Etc., of Ubiquitous Cities enacted in 2008, South Korea has

promoted U-City as a future growth engine of the country and focused its

resources on fostering industries dealing with technologies to make cities

cutting-edge and intelligent and exporting these technologies and knowhow.

In the US and Europe, state-of-the-art information cities are referred to as smart

USA● Multi-city consultative group for smart city formed by the Obama government ● Investment of 160 million USD

EU● European innovation partmnership established ● Replacing nuclear power with new re-usable energy

China● Implementation of national policy to solve urban problems ● Government driven projects in more than 50 cities

India● 100 smart city plans pledged by Prime Minister Modi in 2015 ● (reference: Ministry of Land, Infrastructure and Transport)

Major smart city projects abroadBarcelona

Dubai

New York

The Whole World is Busy Building Smart City!

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ifez Journal 09·10 2016C o v e r S t o r y

Dubai, the economic center of the Middle East, has included the

creation of smart cities in its key strategies and strived to obtain

cutting-edge technologies since 2012.

The world is intently watching the developments made through

the IFEZ U-City model

As for South Korea, the local government bodies are taking the

lead in the creation of smart cities through the formation of

information city promotion teams and operation of pilot projects on

the back of strong support from the central government. Among

them, the IFEZ U-City project, which is being created within IFEZ

– South Korea’s first special economic zone, is garnering much

acclaim and attention from countries around the world.

The IFEZ U-City project is led by Incheon U-City, the world’s

first public-private joint corporation established solely for the

effective management of the creation of U-City. Incheon U-City

was launched in 2012 based on the join investment of Incheon

Metropolitan City and local corporations. Incheon U-City, in

association with IFEZ, focused on bringing the U-City project to life

in Songdo, Cheongna, and Yeongjong in an integrated manner. As

a result, the IFEZ U-City Operation Center was put into action to

replace the previous system, designed to provide a comprehensive

monitoring service for Songdo, Cheongna, and Yeongjong.

Furthermore, U-City-related public services will be launched in full

scale in some parts of Songdo with the completion of the U-City

infrastructure construction for Districts 1 through 4 of Songdo

in November. Public services in the remaining areas will begin

successively in accordance with the step-by-step construction of

the U-City infrastructure in Songdo, Cheongna, and Yeongjong,

which will all be completed by 2022.

As implied by its name, which utilizes the policy term U-City

as its brand, IFEZ U-City is evaluated to be the embodiment of

South Korea’s unrivalled expertise in the construction of superior

information city infrastructure targeted at new cities. Most

importantly, it has emerged as the center of global attention due to

its success in drastically reducing construction and maintenance

costs, the two biggest obstacles yet to be overcome by most

ubiquitous and smart cities, while also showcasing top-tier

infrastructure.

◀ IFEZ provides 5 major public services (U-transportation, security, environment, facility management, and information service) for residents in part of Songdo International City and Cheongna International City. ▶ Mobile telecommunication base station pole▼ Songdo 1-4 zone U-city infrastructure under construction

◀

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IFEZ U-City remains in service all year round

The entire front wall of the IFEZ U-City Operation Center’s

situation room is covered with 51 DLP (digital light processing)

cubes, which are 50-inch (or 127-centimeter)-screen all-in-

one video display devices, hung in three rows with 17 cubes

in each row. Each DLP cube can display multiple images in

one screen, enabling more thorough monitoring. Monitoring

agents are able to check the roads and streets of Songdo

and Cheongna and images recorded on over 1,500 high-

resolution CCTVs installed at major facilities through these

cubes in real time around the clock. Once the construction of

the U-City infrastructure is completed in Yeongjong, 34 DLP

cubes (in two rows) will be added, increasing the total number

to 85.

The IFEZ U-City Operation Center collects information

from CCTVs installed across the city and IoT sensors and

processes and analyzes the collected information. Once

any problem is detected, the Center promptly notifies the pertinent government

agencies and citizens to enable a timely response.

The integrated system of IFEZ U-City is expected to lead to a cost reduction of

KRW 12 billion

The distinctive strength of IFEZ U-City is most effectively represented by the term

“integration”. First, it succeeded in the integration of different regions. Songdo,

Cheongna, and Yeongjong, three regions located at least 20 kilometers apart, were

integrated together into one project for the construction of the U-City infrastructure.

Furthermore, an integrated system was set up to enable the IFEZ U-City Operation

Center to take charge of all maintenance and management services for U-City.

The launch of this integrated system led to a cost reduction of approximately KRW

12 billion in infrastructure construction and is

expected to cut down KRW 4.2 billion in yearly

operation costs for personnel and the system.

IFEZ U-City also sets itself apart by providing the

five essential public services of transportation,

environment, crime prevention, fire prevention,

and facility management in an integrated manner.

The K-Smart City model unique to South Korea

is being sought after by an increasing number of

countries.

In addition, we established the public cloud

Dispersion stage (2022-2030)IFEZ U-City will be developed into and dispersed as a brand and standard model. An industrial cluster will be formed.

IFEZ U-City Operation Center

C o v e r S t o r y

IFEZ U-City Vision

Construction stage

(2015-2022)Vision

Dispersion stage

(2022-2030)

Construction stage (2015-2022)The three districts of IFEZ will be integrated into U-City and the overall operation system will be established.

▶ Life quality improvement ▶ Increase of city management efficiency ▶ Export of IFEZ city model

'Cisco Live 2016' took place in Las Vegas on July 13, which is an international conference hosted by Cisco, a global leading network equipment firm. At the conference, Cisco mentioned Songdo Business District, along with Chicago and Barcelona, as among the most advanced smart cities in the world. Brenda Germanson, a Cisco manager, suggested that you visit IFEZ to find out about the state-of-the-art of smart city.

IFEZ, a Cutting Edge Future City

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system for the first time among South Korea’s

public organizations and further enhanced the

competitiveness of IFEZ U-City. The cloud system,

which is the product of collaboration between IFEZ

and Incheon U-City, is designed to securely store the

massive amount of information flowing in from the

CCTVs and sensors installed across the city.

As such, many dignitaries and company officials, from

Korea and beyond, are continually visiting the IFEZ

U-City Operation Center to benchmark the project.

Government official Yun Mi-gyeong of the IFEZ U-City

Division said, “High-ranking government and company

officials from around the world, from Europe to the

Middle East, Africa, Asia, and Latin America continue

to visit the Center, as well as foreign diplomats in

Korea.”

The South Korean Ministry of Land, Infrastructure and

Transport recently established a plan to complete the

K-Smart City package model and more aggressively

reinforce its presence in the overseas market. The

overseas export of IFEZ and Incheon U-City is gaining

greater momentum powered by the excellence of the

IFEZ U-City model. As a result, our expertise in the

development of state-of-the-art cities was passed on

to the Ecuadorian government from October 2010 to

May 2014. We took part in the feasibility review of the

construction of the knowledge-based city Yachay in

Ecuador and the establishment of its master plan. In

addition, last year, we were commissioned to conduct

a feasibility study about the re-creation of two newly

built cities in Colombia into smart cities. We also

succeeded in being selected as the venue of the 2017

New City Summit to be attended by many leading

figures in the smart city industry.

Government official Kim Jong-won of the IFEZ U-City

Division said, “We plan to develop the knowhow,

technology, and expertise regarding the construction

of IFEZ and U-City into a brand and commercialize it

on a global level.”

❶ Minister JOO Hyeong-hwan of Ministry of Trade, Industry and Energy (August 22, 2016) “Make success stories with Incheon's own characteristic strategy."❷ Caroline Szyber, the Chair of the Civil Affairs Committee, along with a parliamentary delegation from Sweden(February 17, 2016)❸ South Korean Minister of Land, Infrastructure and Transport Kang Ho-in (May 25, 2016) “Smart cities designed in accordance with the K-Smart City model, such as Incheon, should be more actively promoted overseas and shared with other countries.”

❹ Government dignitaries from five Central and South American countries*, including Paraguay’s Minister of Housing (May 25, 2016) *Paraguay, Guatemala, Argentina, Dominican Republic, and Mexico ❺ Sarun Charoensuwan, the Ambassador of Thailand in Korea(February 2, 2016)❻ State Minister of Kuwait Yasser Abul (March 16, 2016) “We are intently watching Incheon’s success in the development of a free economic zone.” ❼ President of Egypt Abdel Fattah el-Sisi (March 4, 2016) “The construction of IFEZ and its new cities is an amazing example in itself.”

VIPs at the IFEZ PR Center and U-CITY Operation Center

C o v e r S t o r y

Incheon Metropolitan City and IFEZ together had this plan to develop Songdo into a global U-City, and thus started close collaboration starting from 2009, and in October 2013, GCoE officially opened.

❶ ❷ ❸

❹ ❺

❻ ❼

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ifez Journal 09·10 2016biz talk

Cisco GCoE, the Site for Collective Innovation Interview with Ben JEONG, Head of GCoE

With the world heading towards the 4th industrial revolution, digital innovation is the zeitgeist. Global Center of Excellence (GCoE), run by Cisco, an internationally renowned network equipment company, is at the very forefront of such innovation. "Digital innovation is not something you can achieve all by yourself," asserts Ben Jeong, Head of GCoE. "GCoE is the venue for collective innovation, conducting experiments and working towards digital society.

Tell us about GCoE.

Cisco is a global company focusing on innovation of technology and putting it into projects, to bring out digital innovation.

GCoE provides a venue for innovative collaboration with various partners in domestic small-and-medium business, start-

up companies, major governmental institutions and academia, with infrastructure and engineering solutions, as well as

facilitating such tests and experiments. In addition, you can verify the solutions that are actually put into practice, which is the

result of such collaboration with various solution partners.

What would be some of the important reasons why Cisco

built the innovation center at IFEZ?

IFEZ is a planned city, a great venue for digital innovation

experiments. Incheon Metropolitan City and IFEZ together

had this plan to develop Songdo into a global U-City, and

thus started close collaboration starting from 2009, and in

October 2013, GCoE officially opened. Now they often say

"Visit Songdo if you want to know what a high tech future

city looks like." A lot of people visit Songdo for U-City case

study.

It seems like collaboration is the key role of GCoE.

GCoE is focusing on collaboration with IT companies, not just

in Korea but in the entire Asia Pacific region. We are currently

working for our solutions produced through collective

innovation, to be checked and improved at the Living Lab

which is a user oriented and innovative open platform. We are

also trying to build and spread Living Lab in Songdo.

Tell us a little bit about the solutions produced by Songdo

GCoE, through such collaboration.

Well, have you ever been frustrated trying to figure out where

you parked your car? If yes, Smart Parking solution produced

by Nexpar System, linked with Cisco technology, can definitely

help you. There are also an environment monitoring solution,

where you use a drone equipped with a camera and smart

sensor, detecting fine dust and carbon dioxide, and so on.

There is also a fog-computing solution, where a great

quantity of data from each sensor can be stably delivered to

the central control system.

Also, could you tell u of the solutions that the IFEZ residents

may actually experience?

For example, the residents in the Posco "The Sharp"

apartments enjoy high resolution video communication by

means of Tele Presence, through TV screens. Not just among

the residents but with their friends outside the apartments

as well. Through this solution, they may consult a doctor for

medical advice, or have a private tutor lesson with a foreign

language teacher living in their own country.

Sounds like a lot of great things happening. Could you tell us what your future

vision is for GCoE?

With digital innovation, cities will be organically linked into one single network, and

our everyday life will be able to enjoy the benefits from innovative changes that you

have never experienced before. When we have technologies like Smart Factory and

Smart Home developed and put into use, what we now only see in the movies will

actually come true. And these are exactly what GCoE and its partners are working

on. Thank you very much for your interest in what we do.

Photo: Songdo GCoE, located in the Posco E&C tower, is focusing on technology innovation, to deliver digital benefits to everyone, based on IoT (Internet of Thing), which goes beyond imagination.

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Focus ifez Journal 09·10 2016

Incheon Is Rising as the Center of Polar Research The project to build South Korea’s second ice-breaking vessel is beginning to take shape

Incheon – the driving force behind South Korea’s surge as a major player in

polar research

South Korea has emerged as a major player in polar research, now

equipped with three research stations in polar regions, including the

nation’s first Antarctic King Sejong Station opened in 1988, and an ice-

breaking vessel. At the core of such a feat lies the Korea Polar Research

Institute, the nation’s only organization dedicated to polar research,

situated in Incheon Songdo International City. Incheon began its quest to

become the center of polar research in 2009 when the city government

decided to lease a 35,887-square-meter plot of land within Incheon Songdo

International City to the Korea Polar Research Institute, which was then

operating in Ansan, for free for 20 years. The Institute’s office and research

buildings have been constructed on the site, and its over 380 staff members

are currently engaging in various projects.

Last year, the city government, in collaboration with IFEZ and the Incheon

Metropolitan Council, leased 10,317 square meters of nearby land for free

for 15 years, on which a facility for education about polar regions in the

form of an amusement park will be built.

The first step is taken to support the construction of the second South Korea-

made ice-breaking vessel

Incheon Mayor Yoo Jeong-bok visited Incheon Port on July 11 and

stepped onto Araon, the ice-breaking vessel anchored at Incheon, and

encouraged the attendants and researchers who are about to set sail

for the Arctic. Araon is South Korea’s first ice-breaking polar research

vessel, weighing 7,500 tons and built in 2009 with government funds

of KRW 108 billion to deliver supplies to the two Antarctic stations and

support research in the icebound areas of the Arctic Ocean.

Mayor Yoo said on the day, “As with Araon, the first South

Korea-made ice-breaking vessel serving as the trailblazer in

the advancement of the nation’s on-site polar research, we will

provide every possible type of administrative support on the

city government level to have Incheon Port designated as the

homeport of the second ice-breaking research vessel.”

The second ice-breaking research vessel is a 12,000-ton vessel

specially designed for polar research. It will be built by the

government to support the polar explorations of the Arctic Dasan

Station with an aim to further expand Korea’s contributions to

polar research. The preliminary feasibility study is currently in

progress before investing government funds reaching KRW 285

billion. Its construction will be completed by 2020 once the project

is given the green light by the feasibility study.

Incheon Mayor Yoo Jeong-bok visited Incheon Port on July 11 and stepped onto Araon, the ice-breaking vessel anchored at Incheon.

“This city made by reclamation?” asks President of Myanmar

“I am so honored to visit world famous IFEZ, and thank you for great hospitality,” wrote President

Htin Kyaw of Republic of the Union of Myanmar, in the gust book, upon his surprise visit to IFEZ

on July 14.

He was on the way to Ulan Bator, Mongolia, to attend the 11th edition of Asia Europe Meeting,

and decided to visit IFEZ between flights.

"Of course he wanted to check on IFEZ, which has successfully deeloped into a global business

city in just 13 years," said an officer from the Incheon Free Econmic Zone Authority, and added

that it is expected to have more visitors from Miyanmar government and enterprises, as a sound

investment network between the two governments has been established.

Vice Minister of MOLIT pledges to "promote and spread this exemplary smart city."

KIM Kyeong-hwan, the First Vice Minister of Ministry of Land, Infrastructure and Transport,

visited IFEZ the next day, July 15, to learn the operation of U-City and current facts about IFEZ.

KIM found it very meaningful that IFEZ is being benchmarked by many parts of the world, and

the know-how is soon to be exported to other countries including Ecuador and Columbia. In

addition, Ambassador Jörg Al. Reding from Switzland and the Guangdong delegation led by the

vice mayor also visited IFEZ in summer.

News+

MYANMAR

Ambassador Jörg Al. Reding from Switzland,Guangdong delegation led by the vice mayor,KIM Kyeong-hwan, the First Vice Minister of MOLIT

President Htin Kyaw of Myanmar.

China

Korea

Switzerland

Visitors include President Htin Kyaw of Myanmar, and the First Vice Minister of MOLIT

Hello, IFEZ! You look great!

ifez journal_eng(201609)

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